Sytner sale is waiting for the flag

MILLIONAIRE Frank Sytner is in talks with fellow former racing driver Roger Penske about an £80m-plus takeover of prestige motor dealer Sytner Group.

Chairman and 27% shareholder Sytner, who won the British Touring Car championship in 1988 and 1990, last week disclosed that the company was in discussions that may lead to an offer.

Penske's UnitedAutoGroup, the thirdbiggest car dealer in the US, is frontrunner to buy the business and expand its UK interests. New York-listed UAG moved into the UK market last month and bought two Mercedes dealerships.

The £340m company said: 'UnitedAuto's expansion into Europe is consistent with its vision of becoming a dominant global auto retailer.'

Penske chairs Detroit-based UAG and owns 65% of it. Motor dealer Inchcape has ruled itself out of a Sytner deal, and analysts believe a 300p-plus share price for Sytner puts it beyond other UK rivals.

Tim Richmond, an analyst with stockbroker Old Mutual said: 'UnitedAuto looks the most likely bidder.' UAG has 127 franchises, including Cadillac, Pontiac, Mercedes-Benz, Porsche, BMW and Jaguar in the US, Puerto Rico and Brazil.

It sold shares last week and raised £53m, which it said would be used to fund acquisitions.

Sytner, whose chief executive is Laurence Vaughan, has 47 dealerships and its franchises include BMW, Mercedes-Benz, Jaguar and Ferrari. Its shares closed at 301 1/2p on Friday, valuing the company at £81.4m.

A UnitedAuto takeover would bring a windfall for Tom Walkinshaw, former racing driver and Arrows Formula One team boss. He has a 4.9% stake after selling Sytner his dealerships.